We tend to assume that rising productivity will lead to rising wages but it ain’t necessarily so, says the Resolution Foundation’s Gavin Kelly:
The productivity crisis of the last few years is far from over but economic recovery is now well-established and there are at least a few flickers of life in the official data on output per hour. The widely shared assumption, often unspoken, is that when productivity picks up then typical wages will grow at the same rate. But that’s not necessarily a safe bet.
Look closely at the relationship, as a new RF report does (building on an important earlier study for RF by the LSE’s John Van Reenen and João Paulo Pessoa), and we see that since the early 1980s productivity has risen by over 60 per cent while median pay increased by just under 40 per cent: a 23 percentage point gap.
Over the…
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Utopia, you are standing in it! 
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